AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Waft Energy Holding Limited has announced a substantial offer to purchase additional shares of Shell Pakistan Limited, escalating its stakes in the regional energy sector. This move follows an initial acquisition agreement involving a majority share transfer, underscoring Waft’s strategic expansion ambitions.
According to information available from the Pakistan Stock Exchange (PSX), Waft Energy Holding Limited, previously known as Wafi Energy LLC, has extended its acquisition strategy in Pakistan. On April 24, 2024, the company announced an offer to purchase up to 24,162,179 ordinary shares of Shell Pakistan, representing 11.29% of the issued ordinary share capital, at a price of PKR 155.11 each. This public offer is part of a broader acquisition plan that began with a share purchase agreement on October 31, 2023, where Waft initially agreed to buy a 77.42% stake from The Shell Petroleum Company Limited.
The offer price per share of PKR 155.11 for the public offer was determined based on a series of calculations in accordance with regulatory guidelines, considering the frequently traded status of Shell Pakistan’s shares on the PSX. The price reflects the highest weighted average share price during the last 28 days preceding the public announcement of intention, positioned at PKR 155.11.
Waft’s move to acquire additional shares through a public offer came after a novation agreement on April 1, 2024, transferring all rights and obligations from the original acquirer to Waft. This transition was reflected in an addendum published on April 5, 2024, updating the public on the change in acquirer’s identity. The offer, slated to close on September 19, 2024, underscores Waft’s commitment to bolster its presence in the energy market.
The acquisition strategy by Waft is part of its broader vision to enhance technological capabilities and operational efficiency within Shell Pakistan. Post-acquisition, the company is expected to continue as a listed entity, focusing on product quality improvement and market competitiveness. This move is poised to reshape the dynamics in the regional energy sector, reflecting a robust investment in the economic future of energy provision.
Arif Habib Limited, serving as the Manager to the Offer, has confirmed Waft’s financial capability to complete this transaction, ensuring compliance with the Securities Act, 2015, and related regulations. The financial arrangements include a comprehensive bank guarantee covering the full amount of the public offer, affirming Waft’s preparedness and commitment to this significant market operation.